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Londonsession

USDJPY 15M BIG BEN BREAKOUT STRATEGY SHORTRule #1 Define the Asian (London) Trading Range We’re going to use the range definition that takes into consideration only the body of the candles, excluding the wicks. Note* this trading rule can be adapted as you get more experienced at reading the price action. Who knows, maybe you’ll be able to discover some price action tendencies around the London open that no-ones was able to see. The London open breakout strategy works because the Asia trading range tends to attract buy and sell stops above and below the trading range. The bulk of buying and selling stops becomes an easy target for smart money. Remember that traders need liquidity to execute their orders. And, the smart money is always in search of liquidity to fill their large orders. That’s the reason why smart money needs to trigger those stops. Rule #2: The One-Hour before the London Open Needs to Generate the Breakout Our backtesting results revealed that momentum really starts to pick up 1-hour earlier than the actual London opening session. There are some smart ways to trade this burst of momentum. Let’s see some technical ways to trade the pre-London open. We don’t need to guess in which way the market will break, we let the market tip his hand and show us the way. This is where things get interesting. Let me explain… During the London session, we’re going to see the most traded volume thus the foreign exchange market should really take off in one direction or another. From our example, we can note the USD/JPY is a one-sided move. We didn’t have any interruptions in the momentum activity, and that’s the KEY for this whole trading setup to work. Let’s now outline the second technical element you want to see with the London setup. Rule #3 Fade the London Open Breakout (follow the smart money) Immediately after the London session opens, we want to see the price fading the pre-open move. If the price move starts fading, we know it was a false breakout The smart money has used the pre-open move to trigger the stops below the range and now they reverse the tie and start buying. We want to see price pulling back into the range at the same speed as it went up. Let me explain… In simple words, the bullish momentum used to produce the false breakout needs to be equal to the bearish momentum used to fade the pre-open move. We enter our trade after the first 5-minutes have confirmed that the price is reversing. Once this trade setup is completed, you should see a price formation that takes the V-shaped form (or inverse V-shape). Let’s now explore what methods you can use to cash in the profits. Rule #4 Take Profit or Ride the Trend We can measure the size of the Asia trading range and project that, from the top or bottom of our range to get our profit target. But, oftentimes this type of setup can lead to a trading day that can extend in the days to come. In this example, the better take profit strategy would be to use a trailing stop. You need to be ready to explore other trading methods to manage your trades. Now… Protecting the downside is as important as making money. Below, we’re going to reveal how to use time as your stop loss. Sounds interesting? So, let’s get straight into the matter. Rule #5 Use a Time Stop Instead of a Price Stop (or you use your TP trading method) In order to fade the London breakout, you need to use unconventional trading methods. In this regard, for our stop loss trading strategy we’re going to use a time stop instead of a price stop. The first time I’ve ever heard about the time stop concept was while reading the Market Wizards book. Billionaire Hedge Fund manager Paul Tudor Jones one of the greatest traders of our times said: “When I trade, I don’t just use a price stop, I also use a time stop.” If you want to get a glimpse into the mindset of the most successful traders and hedge fund managers, please read: Top Trading Quotes of All Time - Learn to Trade. So, do you want to know how to apply the time stop to the London strategy? It’s very simple… If in the first hour after the London open the price didn’t COMPLETELY reverse the pre-opening breakout, we exit the trade. It’s simple as that, no further explanation is needed.
Education
by Tradingstrategyguides
London Watchlist: Buying XAUUSD with a possible continuationGood morning all! Hope you are all having a superb day! The video explains our trade idea on buying XAUUSD today. Below you will find some details about the trade. XAUUSD BUY ENTRY 1653.214 /// MODERATE 10% SL 1637.737 > MAKE TRAILING SL TP 1 - 1688.300 ( pips 3549 / RR 2.4 ) TP 2 - 1699.440 ( pips 4643 / RR 3.1 ) On the 1H chart we have a bullish continuation whcih is supported by a low RSI and a breakout, but we need to move above the EMA on 1H. On 4H we had a retest of the DC middle level and we achieved a massive reversal candle indicating that the bulls might be coming soon.
OANDA:XAUUSDLong
by PrimedGroup
GBP/AUDHello guys ! I'm posting this idea for the London session on tomorrow morning. On this chart we have two oportunities, a long one and a short one. First one, the short oportunity is from 1.95579, sell to first support at the 1.95053, at this price is also one key price of the fibbonaci when our pair was changed bias from long to short. After that, we have an other strong support, tested twice on 13 and 14 February. At 1.94328 he can also have a short oportunity, the target can be at the 1.93723. After testing those two support line, we can go on long, overall we can profit for 4 time on this pair, 2 longs and 2 shorts. We also have an uptrend on 1 H, 4h and Daily. But please keep in mind that for our long setup we must to have a reaction from the price. So one more time, we can go short from 1.95579 with TP at 1.95053 and SL at 1.95680 An other short from 1.94328 with price traget at 1.93723 and a SL at 1.94550 And our longs are from the 1.93723 to 1.94115 with a Sl at 1.93550 and the second long from 1.94428 to 1.94950. Please press the like button also a comment will help me as a motivation. Thanks and keep in profits ! Also in short term from now i want to start an investment group, free, a long term investment, just send me a messenge so i can invite you, thanks a lot !
by Andrei_C
London Watchlist: Shorting USDCHF for nowThe London session is in full force and the only solid trade setup we are trading today is USDCHF. TRADE DETAILS ENTRY 0.98389 SL 0.98523 ( pips 14.2 ) TP 0.97870 ( pips 51.1 ) The RR is a solid 3.6 because the SL is pretty tight. I will look to move to break even and add on 5 pips after 20 pips in profit. Then Might re-think my TP as the contraction is pretty big on the 4H chart, but is supported by a minor one on the 1H. As soon on the 4H chart (right) we have plenty of resistance levels (3) which all acted as either strong supports or resistances the last time price came up to this level! It's important to note that the EMA has not been breached yet on the 4H, its acting as a support still.
Short
by PrimedGroup
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